0:02 All right, hi, everyone, this is John Jay. It's a April 22nd. And I just wanted to cover the new FinCEN reporting requirements that look like there. 0:11 They're trying to intimidate people and get people to report upon the formation of a company. Any company, even a trust, business trust. A...

All right, hi, everyone, this is John Jay. It's a April 22nd. And I just wanted to cover the new FinCEN reporting requirements that look like there.
They're trying to intimidate people and get people to report upon the formation of a company. Any company, even a trust, business trust. And by the way, this doesn't.
This does not exclude trust organizations generally. OK, I can tell you right now how this works.
So those of you who, who want to try and disparage the formation of a company too, so that you can sell a trust, this rule, and these these procedures and policies that I'm going to talk about right now, you're not excluded.
So we're just gonna have to deal with this guys. So I'll give you my opinion on it. And I've just spent maybe a half hour researching this, and I'm pretty fast at researching things, but this is gonna give you you can read it for yourself.
I'm gonna give you the exact point instead of going on the Internet and looking for people's editorials on the subject.
I'm gonna give you what the actual government saying, OK, So, Financial Crimes Network is, um, and an agency that deals with, you know, Financial Crimes, of course, But it's enforced through the IRS.
And it's much of what it's doing right now, really. And it was formed about 20 something years ago, and what it's been doing is policing, US citizens, in their corporate ownership, or interests, in banking activities, in foreign countries.
And that's why I was saying, for years, that, you know, your US Citizens are never offshore because any interest you have, or even signer rights, OK? You're not outside the purview of the Financial Crimes Network.
And so, most of our Financial Crimes Network does is impose huge ugly, horrible penalties, on people, even those that participate with reporting and try to comply with reporting. They impose these huge fines and penalties, and has nothing to do with national security.
Which is what the Bank Secrecy Act is for. And all these matters, OK? So, they've just basically used it to punish people that go, US citizens, it go offshore. That's what's been going on for about the last 20 years.
All right, And I've got a couple of cases on that. And they're Just a bunch of liars, OK? So this is how it plays out. So, here's what they've done in 20 22.
It looks like the United States. The Congress enacted this law called the ..., the Corporate Transparency Act of 2022.
The regulation that we've been dealing with, since you've, since you've known me, guys, come on, let me, I hate to have to go back, everybody. Because.
I'm sorry, guys, I have to mute everybody, please don't, please, don't unmute it and make all this background noise.
I don't wanna make this last all day.
So, Financial Crimes Network, it's been around. You guys have had to deal with that. OK, this is why I write up my documents. The way I do for the LLC, so that we can get past all this stuff. So, the banks have been doing this for years. They've been asking if you know your customer, or what they call the customer due diligence information, Right?
Specifically, we're dealing with the, the beneficial owner information. All right.
So, the law comes the Corporate Transparency Act of 2022.
This is after the Bank Secrecy Act and the anti money Laundering Act and the National Defense Authorization Act, all of which are about policing, any things that may have to do with risk to national security.
And, of course, that's not what they're doing. They're just harassing us. Here. Here we go. This is what they're doing the first time I've ever seen this.
So, so I'm showing you right here, the Federal Register Rulemaking. Now, there's been public debate, this is open for public debate.
Back when they, we're distracting us with all kinds of nonsense of the news, they've been doing this quietly in the background, and I'm sure they're doing some other things too. But basically, here's the, here's the crux of it.
OK, so you've got the Corporate Transparency Act under Section 603.
This is implemented and I'm going to show you what it is, it's implemented under the same regulations that the BSA was, the Bank Secrecy Act and all these others. I'm gonna show you that in just a second.
So they just, they added a law.
It's relying on the same regulations that are already in place, right, In other words, we've already been doing these things with the bank. now. Here's what they wanna do. They want to have, And I guess there's going to be an online data collection form. I would imagine that's going to be approved by the Office of Management and Budget with its own OMB number, But it's going to be online. I believe, I don't know, we'll we'll see when this comes out, because you're gonna find this amusing.
It's not ready yet. But they want to impose this January first of 2024, OK?
And so, I'm going to show you the regulation. How this works. It is under right here. See, this is why I tell you guys to go to the Federal Register. It tells you where all this works.
So when they're talking about this right here, it is implemented under here, OK?
Title 31 of the Code of Federal Regulations, Part 10, 10, and you're gonna find out, it goes down to Part 2. 10, 10.2 30 I'm gonna show you right now.
So I'm gonna flip over here, this is the actual regulation that was mentioned, right, yeah, OK.
And what's interesting is the definition. They always start with the definition, right? Who does this apply to?
Well, it applies to anyone who's transporting money instruments into or out of the United States that exceed $10000, all right?
So, that's not the limit of it, though, it goes on, but I'm gonna, I'm going to scroll down here, don't get dizzy, See, I'm gonna go down to zero point two 30.
So, you can read this yourself, and you've got the link here, OK?
You can Google this stuff.
I want to show you what we've been doing and where this is coming from.
We've already, the banks have already been doing this not here, though, but it's going to be under two. So here we go. So this is section, here we go, 31 CFR Part 10, 10.2 30, All right, this is what we have been doing.
When you go to the bank and they ask you to identify who the beneficial owners, that's why they don't like PMS.
And they could certainly, you know, deal with PMS. It's just that they don't like us using them because we can change them at any time which that we can do that. Anyway.
In any case, here's what I think they're going to do.
I'm not gonna go and bore you with all this stuff, but they're gonna tell you who the beneficial owner is, and we've already had this discussion with many of you. You understand how they're doing this stuff?
Um, in fact, we, you, we use this concept to escape liability legally.
They're just trying to, they're using this as that point in law where they can, they can regulate something, OK, I'm gonna show you what they're gonna do.
So, beneficial ownership, reporting, information, reporting. Here's what they're gonna do. They're gonna, they're gonna make it aware.
When someone registers a company with your Secretary of State, all 50 states, I believe the Secretary of State is going to be reporting to financial crimes network and probably some sort of batch reporting or something like that. So, for example, let's say you register a company, it's my theory on how it's gonna work.
And you don't do this disclosure that I'm about to show you, You're probably going to get a notice saying, hey, if you don't do this thing within so many days, oh, oh, no.
Oh, problems are going to happen. Right?
So Then, what's more likely going to happen is the banks going to also be the enforcement arm of this whole monstrosity and it's not going to do business with you unless you report it on yourself. And, of course, they do this under the guise of, you know, finding criminals, but of course, we're all suspects in these crimes and whatnot. So, I don't know exactly the legal aspects or how you would defend it yet. There are some strategies, But I'm just gonna say, for the purpose of this recording, because I need to put more time to this, but the, for this purpose, when I'm when I'm showing today, is I really don't see a problem with disclosing it. No, I don't like to have to disclose it.
And they're almost making it to where if I, if I register a company with the state, like let's say I want to register a company just to own property to hold title to my house, for example. Well, then I don't need an EIN.
And by this, you still don't need an EIN.
But in the FinCEN disclosure, it's going to ask you for an identifying number from a government document or an identification documents. Some kind, right? Like a driver's license or passport, this is interesting. So, that's what it's looking at right now. So you're going to find this here. So they're going to tell you what beneficial ownership information is. It's all the kinds of things we already know.
A reporting company would be the company that you're forming, OK?
You cannot report this stuff now. I don't want to, but, I mean, they're gonna start saying, in January that you're going to have to do this.
I think the way they're gonna enforce it is just by not letting you open a bank account, and maybe the Secretary of State would, which revoke your charter.
I don't know yet.
I don't see a point in here where it's voluntary. Like, they're saying, like, if you don't do this thing, it's gonna, there's going to be these penalties, civil and criminal penalties, right?
So, this is what applies to everybody.
Now, basically, everybody, OK, it does not exclude trust organizations, no matter what, how fancy you think your trust is.
It does not exclude them.
Um, this is not creating a tax liability, either.
Let's see here.
Yeah. So there are some exemptions. But it's not gonna apply to most of us. It's going to be, I mean, they're exempting the good old boys, right? They're not exempting people that actually go out in the world and work hard and have a business that they want to. They want us to comply with all this stuff. Or we're going to be excluded. Right.
So, anyways, this is all your FAQs regarding the subject.
If you read all this, this is what the Financial Crimes Network is saying. And this is what you want to follow. This is what you want to understand. Sure.
You can go on the Internet and find all this commentary and just realize that much of the commentaries about lawyers trying to scare you so they can sell you their scheme or whatever they're doing, OK, But this is, this is where it all comes down to yourself.
My summary of this whole thing is, all right, I don't like it.
But Financial Crimes Network is collecting information for no other purpose than to collect information about the beneficial owners and their requiring not just your name, but the requiring some sort of way to identify you like the number of your driver's license, for example.
And the way that information appears to be collected. It's going, it's not ready yet, but it looks like it's going to be through what they call a portal, or an API or something.
You know, a dialog box, if you will, on the Internet.
So maybe this is going to be a link that it was going to be In the process of registering with your Secretary of State.
When we form the companies, Like if you, if you have someone do it, or if you have me do it, it would be transparent to you, other than, I might have to ask for more information, Or you might have to provide more information. So, we'll see how this plays out. But, again, they're not ready yet, I just want to share this with you guys. All right, So I'm going to stop that. If you guys want to talk about or make some comments, I mean, I'm sure we can, we can deal with this.
It's just, that's the way it looks right now.
Somebody's got it, OK? Yeah, John? Yeah.
John, I was wondering, well, are Lean document?
We're going to have any bearing on this where we'd be able to use our private Lean, yeah Against this. That's a great question. Yes, I That's why I don't want to speak about it yet. But I just It's just, like everything else area. This is the worst Tange ever seen, by the way, OK? But every change I've seen in the last 30 years I've always been a way to get around it.
But this time, I'm going to say, I think this is a chance to beat them over the head, right? Now. Seriously, I'm very noodle, man. So, I'm going to show you. So, let's go down to the FAQs is what caught my attention, right?
At the very end, they say, How will offense and protect beneficial ownership information reported to it?
Oh, yeah, it's so important to us. Yeah. And we're going to have a secure IT system.
Oh, well, that's nice. What I'd like to know is what your financial responsibility and accountability is to me for a data breach, and you don't show it here.
And what about when you collect information that identifies my banking activities, and identifies me ultimately, because I'm going to have to give you something that's identifying me, and I have a lien on that.
So anyways, that's one way we can beat the **** out of the other ways. I mean, why are you a suspect than that?
You have to telling yourself where everyone's a suspect now cannot be even legal.
That'll be interesting. Good question though.
John, I've got a question.
So, did you say that you, if we have an LLC that we have that you can actually write an, was it the operator operating agreement?
That you said that you could, you write it a certain way that? Well, it would be the articles. The up agreement, nobody gets to see. But when I deal with the bank, like, I give you documents, You don't even need these documents. I just try to make it easier to go into the bank.
So, what's going to happen is I think in addition to this.
You're probably going to get some sort of approval or that you can that you've disclosed file a report with FinCEN. It's going to be something like that.
The banks going to say, we're not gonna open your account unless you have this certificate or something from FinCEN, probably.
And the Secretary of State won't let you renew your charter, or even register a company without compliance as what I'm thinking.
This is why I started this thing about, you know, corporate structures on the internet that are outside. Yeah, I got an aged LLC. I bought it from somebody.
And What I have to get from New Mexico, what I have to get is the articles And you know what, you know? And if you, if you actually when registered and bought when they send you that? Aren't exactly what I think. So I have to get that front end.
So I'll be able to get that, but you're saying, if I want to go and Opened up a bank account or something, They might ask for this. Yeah. Yes.
Yeah. What's gonna happen is they're gonna make it to where even if you have a New Mexico that doesn't require an annual report. I think the secretary of state and or the bank is going to send you a notice saying you have to do this FinCEN thing.
And if you don't, they're going to revoke your charter or not open your account.
It'll be, What am I already have? What if you already have an account, Because I have one of those? I think I'll close it.
Because the bank account, huh? I think that's what they're going to do. Yeah.
And as much as I don't like disclosing it, I don't see a problem to disclose this information. At the same time.
I think I would disclaim all liability because really, that the law itself is really there for investigating crimes. And you're not a suspect in a crime, but yet you're being asked to, you know, give up evidence against yourself. That could be used to claim the fifth or something, right? You know, something like that, I wonder about that. So like I said, there's more research I have to do on that.
OK well I have one.
Like I said I've had it for awhile you helped me set it up did the PMA and everything has been Corbett?
I guess if I get when I like to let you know and hopefully you'll have something we can. Yes. Yeah, and you know the other thing is, I believe, you know, how you do the bait and switch on them. Or we change the the owners and we've fallen write articles and stuff. I mean, I think we need to file your annual report. You file your company for the first time, or your you amend the articles.
I think all this is going to come into play, there's going to be this, you know, checkpoint.
Right? All right. Well, I just went to, Let's wait and see what happens. Yeah. So I'll give, you guys will have more discussion on this. I just want to bring this up because I know I'm gonna get a lot of questions about it.
And, yeah, it is what you see here, but this is what you want to see. It, don't be shopping on. The internet gone crazy, Oh, this guy who's falling!
If this is 24, right? Didn't show, this is in 20 20 for the right. You got 8.8 months.
Yeah, OK, well we got time to really dial it in and we have time to understand what their game is. Yeah, and, and, and, and I just really, I don't know how they can even enforce this legally, but I've seen them do it on the off shore type deals.
And I didn't really the only thing I did, in fact, I can share this with you guys. I have a case right now where I filed a motion to Dismiss and Fed Court, and the judges refused to make a ruling on it. They did they wanted to ignore it, right? I'll tell you what I did, but it was right or the same body of laws, OK? Exactly.
Under the Bank Secrecy Act but it's exact rakes, OK? And so, the client was sued by the, by the IRS, the IRS, which is the United States, to the cloud. My client see by the United States for not having filled out the forms correctly.
And this is a quagmire of having to fill out forms, because I can just tell you, from the rules, you'll never be able to do it correctly. They can always say, You didn't do it correctly. That's why I say it don't even fill them out.
But the problem is so they wanted to do this.
So I filed a motion to dismiss, and I said that this, this body of law, under, which they're trying to enforce these disclosure rules, has to do with risk, to national security, And I say the law and everything. I started that, I started the intent of Congress. I put that on the record, I can show you guys the emotional strip it out of, you know, the name, and the judge first. You didn't want to rule on it. Because it's jurisdictional.
So we can file at any time you want. I can pilot, you know, a year after they made a ruling against my client or something.
And then I filed a motion.
I said, hey, you only have 70 days to make it really in this combined judge. What's up? So, he thought he made a ruling, and he says, denied.
No, so they're gonna, they're gonna put the onus on us to do something about this.
If you still want to deal with the banks afterwards, I mean, what I'm thinking is, what we need to do is set up our companies.
The way that we used to do it, 100 years ago, you announced the company in the public with his articles, instead of registering with the state, you announce the company in the public and you operate that way, and you use a monetary unit that's suitable for your your industry, which we had, that. We had that just before. Well, towards the end of the Civil War, we didn't have one currency. We had a list of them.
And I think we're getting back there. I mean they brought in the different crypto coins, so we have, we have that this wasn't, this is not new, but we're just not embracing it.
We've been gambling and kryptos, we're not using it for what it really should be used for yet.
And so, my thinking is, why not create a whole accounting suite with a corporate structure that's published on the Blockchain, then you have your own currency, then it interacts with everyone else.
This is nothing new. This is using technology, and this will allow companies to operate outside the banking system.
I really think this might be the solutions at all, so would you discourage us? Don't get any ... even, if it's just not, we're not even get an EIN, like just the whole titled cars.
And then, it means that, well, if you're going to register, I just think you're not going to get around this, I think if you want to use a company, like, OK, You can use a company, not registered, Yeah, you will avoided that.
So, sure, that, and I will always do that. If I register a company and I'm gonna hold title to real estate or my vehicle, I don't mean EIN and I don't need a bank account for it, right? All right?
So let's say, I mean, let's say you have a myriad of investments, and I've done this many times before where I'll create LLCs for the client but I won't register them.
Now, only register one LLC with an EIN in a bank account and that manages all the cash for all the other investments, OK, so now my footprint into the disclosing, all this stuff is very, very narrow.
We can do it that way, and we can still do it that way.
Yeah, They're not going to stop us there.
When we have to register something, because the bank says, we're not going to open your account unless you've registered. Right. They've been doing this forever.
Now and now, they're going to, I think the choke point now is moved from the retail industry. Not now, it's moved to where you're actually registering the company.
That's like the that's a big change.
So like a New Mexico, LLC and the rest of the company, that's not a problem. It's just that, at the choke point, Right. At the Secretary of State's Office, you're going to have an additional disclosure obligation. That's what's going to happen.
Or the Secretary of State's not going to register it.
And that doesn't mean your company cannot be valid.
I mean, obviously, you can have a company that's valid, it's not registered with the state in many ways. And so the key for us is that if we need it, most of us need to deal with the banks. Because you know, we're dealing with money in cash and business and this sort of thing. So that's where, that's where our problem is.
Now somebody introduced me the other day this, you probably already know this but true UST, the stable token, it has an escrow account, token, something token trust or something like that. I forget.
But, anyways, apparently, and I haven't opened an account there.
I think once you go through KYC with token trust, it's going to allow people to go from dollars to the stable coin, back and forth.
As an, as an escrow.
So, this is something worth looking into. But, what I'm trying to do is I've been so far behind in doing this is create, a corporate structure. With its own software accounting suite. Its own ability to manage the company from, Start to finish. If you want to raise capital. Our software can do this. You want to do the accounting. It's done, you want to borrow money. It's done, it's all in the accounting, OK, it's on the blockchain, and it has its own currency so that the stock has its own its own currency.
This is the value of the company. Right. And it's all on an IP address.
It's not a legal document, per se. It's it's on an IP address.
Alright, so your corporation is going to be basically online credentials.
We just haven't released it yet, and supposedly this year, which we should be having beta version.
So we'll see what happens, maybe that might be aware of this.
I will say, so.
Alright, so that's it. I just want to share that with y'all. I'm recording this, I'm gonna give you all the link and the call from Thursday, I'm gonna publish that shortly.
Next slide. Enjoy your weekend.
Thank you, John, already as usual. All right. Take care.


1. John Jay discusses new Financial Crimes Enforcement Network (FinCEN) reporting requirements that could potentially intimidate people to report upon the formation of a company, even a trust or business trust.
2. These requirements do not exclude trust organizations and are aimed at US citizens with corporate ownership or interests in banking activities in foreign countries.
3. The FinCEN, enforced through the IRS, often imposes heavy penalties on individuals who don’t comply with reporting rules. These rules have been used to deter US citizens from going offshore for the past two decades.
4. The Corporate Transparency Act of 2022 is a new law enacted by Congress that deals with such reporting requirements.
5. The new law requires the reporting of beneficial ownership, which could have civil and criminal penalties for non-compliance. It doesn’t create a tax liability and has some exemptions, but these likely won’t apply to most people.
6. Beneficial ownership information includes all kinds of things, such as a government document or an identification document.
7. John Jay criticizes FinCEN for collecting this information, saying it serves no other purpose than to collect information about the beneficial owners. He predicts that it may cause additional hassle for those forming a company.
8. He suspects that banks may act as the enforcement arm for these new regulations, potentially refusing to do business with companies that do not comply.
9. John Jay expresses concern about the security of the collected information and questions the agency’s responsibility and accountability in case of a data breach.
10. He advises waiting to see how the situation develops and encourages further discussions on the subject, while expressing concern about the possible implications of the new laws and regulations.

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